VOA
Sites by Language
Top Stories:
US, Afghanistan to Hold Talks with Taliban
G8 Summit Ends With Call for Syria Peace Talks
English Worldwide
English
voanews.com
Learning English
learningenglish.voanews.com
Eastern & Central Europe
Shqip
Zeriamerikes.com
Bosanski
vijestiglasaamerike.com
Ελληνικά
gr.voanews.com
Македонски
mk.voanews.com
Srpski
glasamerike.net
Українська
chastime.com
Eurasia
Հայերեն
amerikayidzayn.com
Azerbaijani
amerikaninsesi.org
ქართული
amerikiskhma.com
Русский
golos-ameriki.ru
Central Asia
O‘zbek
amerikaovozi.com
East & Southeast Asia
Burmese
burmese.voanews.com
粵語
voacantonese.com
中文
voachinese.com
Bahasa Indonesia
voaindonesia.com
ខ្មែរ
khmer.voanews.com
Khmer
voacambodia.com
한국어
voakorea.com
ລາວ
lao.voanews.com
ไทย
voathai.com
བོད་ཡིག
voatibetan.com
Tibetan
voatibetanenglish.com
Tiếng Việt
voatiengviet.com
South Asia
বাংলা
voabangla.com
دری
darivoa.com
پښتو
pashtovoa.com
وی او اې ډيوه ريډیو
voadeewaradio.com
اردو
urduvoa.com
Africa
Afaan Oromoo
voaafaanoromoo.com
አማርኛ
amharic.voanews.com
Français
lavoixdelamerique.com
Hausa
voahausa.com
Kinyarwanda
radiyoyacuvoa.com
Kirundi
radiyoyacuvoa.com
Ndebele
voandebele.com
Português
voaportugues.com
Shona
voashona.com
Soomaaliga
voasomali.com
Kiswahili
voaswahili.com
ትግርኛ
tigrigna.voanews.com
Zimbabwe
voazimbabwe.com
Middle East / North Africa
فارسی
ir.voanews.com
كوردی
dengiamerika.com
Kurdi
dengeamerika.com
Türkçe
amerikaninsesi.com
Latin America
Creole
voanouvel.com
Español
voanoticias.com
VOA
Log in
Sign up
Log out
Home
USA
Africa
Asia
Mideast
Europe
Science & Tech
Health
Entertainment
Economy
Programs
Audio menu
Live streams
Africa Live
Global Live
Music Mix
Latest Newscast
News
/
Economy
EU, China Stumble Toward Solar Trade War
Print
Comment (2)
Share:
FILE - Employees examine newly-made solar panels before boxing for shipment at a factory of Yingli Solar in Baoding, Hebei province, August 2, 2012.
Tweet
Related Articles
US-European Free Trade Talks To Begin Soon
TEXT SIZE
-
+
Reuters
February 21, 2013
BRUSSELS/BEIJING
— China's leadership transition is complicating talks to resolve a multi-billion-dollar dispute with the European Union over solar panels, pushing both sides closer to placing punitive tariffs on each others' exports and risking a trade war.
The newly-appointed chief of China's Communist Party Xi Jinping is set to take over the presidency at a national congress in March. But the full line-up of government officials is not yet in place and China's current commerce minister is likely to step down after what some have said was a political snub at the party's congress in November.
EU leaders want to avoid following the United States' decision last year to impose duties on Chinese solar power products, aware that Europe needs China to help it emerge from three years of economic crisis.
But EU officials and diplomats say they have made little progress, accusing the Chinese of "stonewalling," and are unable to get beyond the outgoing commerce minister, Chen Deming. They complain of a limbo in the ministry that will not end until after the March congress.
"There is no clarity on what the new leadership thinks about trade," said a senior EU official involved in talks with China. "They are stonewalling and the window of opportunity for a solution on solar panels is closing."
China's commerce ministry spokesman Shen Danyang told reporters in Beijing this week that officials are "conducting consultations and relevant response work with the concerned parties," but did not comment on any impact China's leadership transition is having on negotiations.
Germany, the United States and China are the world's biggest solar markets and companies are in a race to win contracts as countries seek to limit pollution and global warming.
In a non-binding vote, EU countries approved on Wednesday a request from industry to register solar panels from China, which would allow for retroactive measures if the European Commission agrees to registration and does impose duties.
But the Commission, the EU executive, denied on Thursday that the decision by member states signalled Brussels was closer to blocking Chinese solar products. "Let's not interpret this as suggesting anything - it is simply administrative procedure," EU trade spokesman John Clancy said in a statement.
Race Against Time
European solar panel manufacturers, led by Germany's Solar World, accuse their Chinese counterparts of receiving state subsidies to flood the EU with panels sold below cost and putting Europeans out of business to corner the market.
The Commission launched an investigation last September into Chinese solar panels, the biggest import sector it has ever targeted. China exported more than $25 billion worth of panels to the European Union in 2011.
Highlighting the risk of a trade war, Chinese solar companies also accuse the European Union of wrongdoing.
China says Europe illegally favors it domestic solar panel producers and Beijing is considering its own duties on EU exports of polysilicon, which is used to make solar panels.
FILE - Employees carry solar panels at a solar power plant in Aksu, Xinjiang Uyghur Autonomous Region, May 18, 2012.
x
FILE - Employees carry solar panels at a solar power plant in Aksu, Xinjiang Uyghur Autonomous Region, May 18, 2012.
Complicating things further, some European distributors and installers of Chinese panels say EU tariffs on China would be damaging for Europe's efforts to develop clean energy. They say solar energy is only efficient using Chinese products that are up to 45 percent cheaper than those made in Europe.
"Even without the [leadership] transition, this is a very difficult issue,'' said Scott Kennedy, director of the Research Center for Chinese Politics and Business at Indiana University. "I really don't see a negotiated outcome."
Time is of the essence because many expect Beijing to make a decision on polysilicon duties as soon as the end of February.
The EU's investigation must culminate in a decision by June.
In reality, that is likely to come by mid-April, when diplomats from the EU's 27 countries make their recommendation to the European Commission, which is handling the case.
Such a timeframe does not give a new trade minister in Beijing much time to get acquainted with the issues and reach a settlement. EU Trade Commissioner Karel De Gucht said there is no chance of tweaking the investigation's deadline.
"They know exactly what it is about, the solar panel case. We are consulting them, it is up to them," De Gucht told Reuters. "You cannot have something like a prolongation of that period because there is a transition in China."
In the past four years, the Commission has only chosen to end one trade defense case in China without imposing duties.
You May Like
NASA Introduces New Astronaut Candidates
NASA says half appointees are women, making this highest percentage of female astronauts in one class
More
Singapore, Malaysia Choke as Illegal Indonesia Forest Fires Rage
Illegal clearing of forests by burning is a recurrent problem, particularly during annual dry season that stretches from June to September
More
Scandals Hit Obama's Standing With US Voters
Obama's approval rating fell eight percentage points over past month to 45 percent
More
This forum has been closed.
Comment Sorting
Latest First
Chronological
Comments
by:
Ian
from:
USA
February 22, 2013 5:48 PM
Report Comment
"Complicating things further, some European distributors and installers of Chinese panels say EU tariffs on China would be damaging for Europe's efforts to develop clean energy. They say solar energy is only efficient using Chinese products that are up to 45 percent cheaper than those made in Europe."
it is the same excuse Walmart used . You save 45% but the hidden cost of european workers losing jobs may be higher than 45% !
Report Comment
Reason
*
Please enter the code shown on the image
by:
JKF
from:
Ottawa, Canada
February 21, 2013 11:20 PM
Report Comment
Tarrifs/duties are the only way to deal with producers, that do not work from a level playing field; and more importantly to protect home producers from an unfair business practice(s). But the money collected must go to the producers, as compensation...will it?
Report Comment
Reason
*
Please enter the code shown on the image
Featured Videos
Your JavaScript is turned off or you have an old version of Adobe's Flash Player.
Get the latest Flash player
.
Your JavaScript is turned off or you have an old version of Adobe's Flash Player.
Get the latest Flash player
.
Video
Egyptian Support for Syrian Opposition is Words Over Action
Egypt has further aligned itself with those trying to overthrow Syrian President Bashar al-Assad. But as VOA's Elizabeth Arrott reports from Cairo, it remains unclear how far Egypt will back its words with action.
More Economic News
Some Aid Programs in Sahel Prefer Cash to Food
More Russian Oil Flows to China in Shift From Europe
US Agriculture Industry Opposes Changes to Food Aid Program
Berlin Program Helps Minorities Enter Workforce
US-EU Set to Pursue Trade Deal, Possibly World’s Biggest
Swiss Balk at Bank Disclosures to US Authorities
G8 Urged to Fight Africa Land Grabs
Ethiopia, Egypt Meet to Ease Nile Dam Tensions
EU Tax Chief Urges Swiss to End Bank Secrecy
Most US Retailers Choose Not to Sign Bangladesh Factory Accord
More Articles
World Currencies
EUR
USD
0.7773
JPY
USD
102.64
GBP
USD
0.6579
CAD
USD
1.0209
INR
USD
54.767
Rates may not be current.
Most Viewed
Syria Conflict Exposes Old Rivalries at G8 Summit
Obama, Putin Agree to Disagree on Syria
Obama, Putin Agree to Disagree on Syria
NASA Introduces New Astronaut Candidates
Singapore, Malaysia Choke as Illegal Indonesia Forest Fires Rage
Most Emailed
Singapore, Malaysia Choke as Illegal Indonesia Forest Fires Rage
Does Egypt Face a New Revolution?
Gulf States to Launch Sanctions Against Hezbollah
Report: NSA Leaker Denies Contact with Chinese Government
Hope for Change in Iran Tempered With Caution
Most Discussed
Turkey Warns It May Use Army to Quell Protests (10)
Obama, Putin Agree to Disagree on Syria (7)
Iran's President-Elect Rowhani Promises 'New Era' (5)
Assad Warns Europe Will 'Pay the Price' for Arming Rebels (4)
Obama Defends NSA Spying Programs (3)